House prices in England and Wales are to increase by 30% over the next five years, according to new research by property website rightmove and Oxford Economics.

However, some regions are forecast to do a lot better than others.

The forecasts have been compiled using property and economic data, including asking and sold prices, surveyor valuations and regional job predictions.

Regional differences

The predicted house price growth varies sharply between the north west (24.3%) and the south east (37.3%).

Region

Five-year forecast

National (England and Wales)

30.2%

South east

37.3%

East

35.6%

London

32.5%

South west

31.8%

Yorkshire and the Humber

27.9%

West midlands

26.5%

Wales

25.9%

East midlands

25.0%

North east

25.0%

North west

24.3%

[Related story: House price rises slowing says Halifax]

The fastest performing areas

As the table above shows, the biggest price increase is expected to be in the south east. The report argues it will benefit from the “ripple effect” from London, which will see house prices grow by 33%. Towns and cities within commuting distance of London will grow the fastest, as the table below outlines.

Area

Forecast house price growth

Southampton

42.9%

Luton

41.0%

Brighton

40.6%

Swindon

40.4%

Enfield

39.5%

The slowest performing areas

West London identified as the most modest area of the capital for house price growth, with only a 14%. increase expected. This keeps it in line with slowly rising northern towns and cities such as Carlisle (17%) and Manchester (19%).

Area

Forecast

West London

13.6%

Carlisle

17.4%

Lancaster

18.1%

Manchester

18.8%

Northampton

20.5%

The factors behind house price growth

According to the report, some factors will have a greater effect on certain areas than others when it comes to house prices. For example, exchange rates have a significant effect on house prices in prime areas of central London which are most likely to be popular with foreign buyers. In the south east, however, employment and population growth are key.